Private banking made easy

Got a couple of million euros burning a hole in your pocket? Then you might be considering private banking.

For the uninitiated, when you sign up for private banking you receive tailor-made services and expert knowledge on how and where to invest your money. However, it doesn’t come cheap. Private banking is aimed at high-net-worth individuals who have at least €500,000 to spare. Advantages range from getting the inside track on hedge funds to help with buying a yacht. If you prefer to let someone else look after your wealth you should be vetting them more strictly than you did your partner before you said ‘I do’. Who knows? Your relationship with your private banker may just outlast your marriage. With that in mind, here are a few tips on how to choose your perfect financial match.

What’s in a name?

How do you choose a private bank? A rule of thumb is that reputation counts. King Albert II himself is said to bank with French bank Société Générale, although they do not disclose client identities as discretion is the name of the game when it comes to private banking. Most retail banks, such as ING, BNP Paribas Fortis and Belfius (formerly Dexia), offer private banking services, and banks often acquire new accounts on client referral, so ask around. When it comes to specialist private banks in Belgium, Delen, which Euromoney magazine ranked as the Best Private Bank in Belgium from 2007 to 2010, and Degroof, which took the title from them last year, are two of the best. Société Générale was named the Best Private Bank in Western Europe by Euromoney this year, while BNP Paribas stakes its claim, saying it is “among the world’s top ten private banks and is one of the eurozone’s leading banks”, as does ING which proudly describes itself as “one of the world’s strongest financial organisations with over €860 billion in assets”.

Trust me, I’m a private banker!

Many private banks sell themselves on low staff turnover because building a relationship with your banker is crucial in building trust. Vet them: check how long they have been working with the company, and you should also ensure that they have the right qualifications. Beware the bombshell or himbo: banks know that sex sells and often choose good-looking account managers. Check their portfolio performance and don’t be dazzled by the veneer. That said, the client-banker relationship is crucial, so make sure your private banker is someone you would want to share a gold-leaf-infused vodka with. All banks offer frequent meetings with your banker to ensure you’re kept in the loop and you can also access your banking dossier online. Don’t get stung by the taxman

Specialised tax advice is offered by experts as part of your private banking service. This is especially useful if you have sizeable assets in different countries and currencies. Some financial experts suggest a good lawyer and a better accountant as another way to manage your money and tax solutions, often offshore.

Counting the cost

Private banking services don’t come cheap. Depending on the bank, minimum requirements can range from €500,000 to €25 million. However, the more services you take advantage of, the more cost-effective it will be. Most banks offer tailor-made services and the fee system reflects this, though experts say you shouldn’t pay more than 2 percent yearly of assets managed. Depending on the options you choose, fees may be charged per transaction made. Check which option is the most appropriate for you.

Put your money where your mouth is

If you want to take a back seat and enjoy your wealth while someone else frets over your portfolio, each bankwill offer a range of ways to invest. They also offer you the opportunity to be more hands-on if you so wish. ING boasts of carefully vetting hedge funds. Société Générale has won awards for its structured products. Most banks offer bespoke solutions to investments related to your goals. Expert teams are consulted daily to provide up-to-date financial market insight to help you invest in the right place at the right time. Investment advice is also offered for life insurance policies, inheritance, real estate and derivatives.

Can’t buy me love - but can buy more money

A paradox of being rich is that everyone wants to lend you money. Unlike a normal bank, private bankers can help to extend large lines of credit. Different banks also have different partners abroad. This helps when you want to make investments or take out loans in another country. BNP Paribas Fortis, ING and Société Générale boast a solid global presence. Good private banks have experts living in the country you wish to invest in, and they often organise networking lunches for their clients, giving you another leg up on the rich list. What to get for the person who has it all?

Want to buy a private jet, lease a yacht or become a collector of fine art but don’t know where to start? Your private banker can help you fulfil these dreams. ING Private Banking offers services such as yacht leasing to give you more flexibility than buying, as “your capital stays intact and protected”. Or you might wish to avail yourself of the services of an art management expert. Whether you wish to have knowledge about how to start, expand, or simply a get a valuation of your collection, you’ll have an expert on hand. For those who want to give a little back, there are also socially responsible investment experts for the philanthropists out there.

FOR MORE INFORMATION

BELFIUS

www.dexia-private-banking.be

BNP PARIBAS FORTIS

www.bnpparibasfortis.be

DELEN

www.delen.be

DEGROOF

www.degroof.be

ING

www.ingprivatebanking.com

SOCIÉTÉ GÉNÉRALE

www.privatebanking.societegenerale.com